Contract - OC Sanitation - 1980-03-14 (2) AGREEMENT FOR COLLECTION OF
SEWER CONNECTION CHARGES
THIS AGREEMENT, made and entered into this 14thday of March
1980 , by and between the Costa Mesa Sanitary District a public
corporation hereinafter called CMSD and the County Sanitation
District No 6 of Orange County California , hereinafter called
"District" ,
W I T N E S S E T H
WHEREAS District has by the enactment of Ordinance No 604
established a schedule of sewer connection charges and
WHEREAS , all or a portion of the improved territory of the
District is within the boundaries of CMSD and
WHEREAS , the CMSD regulates all connections to its sewerage
facilities and its sewerage facilities are connected to those of
the District and
WHEREAS , it is for the mutual benefit of CMSD and District that
the sewer connection charges provided for in said Ordinance No 604
of the District be collected in a manner most expedient and least
burdensome on the owners of property within the CMSD and
WHEREAS , the CMSD will benefit by the construction and main-
tenance of sewerage facilities of the District within the boundaries
of CMSD by District from the funds to be collected from said sewer
connection charges
NOW THEREFORE, it is mutually agreed as follows
1 CMSD as agent will and does hereby agree to issue permits
and collect the charges established by District under said Ordinance
No 604 , as amended from time to time
2 District shall prescribe those classifications of charges
to be collected by CMSD
3 CMSD will account for the charges collected and remit to
District monthly the monies so collected except as provided in
Section 6 hereof
4 Procedures mutually agreeable to CMSD and District shall
be established for collection and remittance of said fees
5 District does hereby appoint and nominate CMSD and its
Agent and employees as the same may be designated by CMSD as
agents of the District for the purpose of issuing permits and
determining and collecting the sewer connection charges established
under Ordinance No 604 , as amended This does not authorize CMSD
to act as agent for the General Manager or to perform the duties
of the General Manager of the District as set forth and established
in said Ordinance No 604 , as amended, except as expressly set
forth in this Agreement
6 CMSD agrees to act as agent for District as herein provided
for a fee equal to five percent (5%) of the fees collected by CMSD
for permits issued pursuant to the provisions of this agreement
and District agrees to pay said fee monthly Said five percent (5%)
fee of CMSD shall be deducted from the charges collected by CMSD
and the balance remitted to District pursuant to Section 3 herein
7 If CMSD is presented with a dispute as to the validity
reasonableness enforcibility, or applicability of the charges
agreed to be collected by it for District, CMSD shall notify District
of the problem and District shall take over the collection and
enforcement of its ordinances in subject cases It is contemplated
that this shall be the procedure for serious disputes made upon
some current legal right or basis as distinguished from crank-type
or ill-founded disagreements
8 CMSD shall not be liable to District for its unintentional
and inadvertent failure to collect a connection charge actually due
District or its unintentional or inadvertent miscalculation of the
amount of the charges , fee or fees due District
9 District hereby agrees to hold CMSD free and harmless of
any and all liability that might arise if any such fees collected by
CMSD shall be determined to have been illegally collected
It is further understood and agreed by and between the
parties to this agreement that CMSD in acting as agent for Sanitation
District No 6 does not warrant nor present that Ordinance 604 is
valid and assumes no responsibility for its application in light of
Proposition 13 or any legislation relating to the powers of districts
to impose taxes or collect fees and Sanitation District No 6 agrees
to defend and indemnify and hold harmless CMSD from any action for
tax refund or any action challenging the validity of the actions of
CMSD in performing the duties as set forth herein
10 District agrees to provide legal services in the defense
of any action seeking to collect sewer connection fees alleged to
have been illegally collected
11 It is agreed that at the request of either party hereto
formal renegotiation of this agreement shall be made at two-year
intervals from the effective date hereof
12 This agreement may be terminated by either party giving a
180-day written notice to the other party designating a termination
date, which date shall be the first day of a calendar month
13 This agreement shall become effective on the 14th day of
March 1980
-3-
COSTA MESA
SANITARY DISTRICT a public corporation
APP AS TO FORM: By Aneed - vh, 4,,,e42
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A O:i•11:Y F'MP(STRICT BY -7 r 4
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Secretary/Clerk
DISTRICT COUNTY SANITATION DISTRICT NO 6
of Orange County, California
a public corporation
1
By cc .�_ t �: ( La rte`
Chairman Board o ' Directors
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By /.// 4410 _...
S:'cr- -r r c Directors
APPROVED AS TO FORM
AND LEGALITY
Ani• a i
District' s General Co•nsel